What the number is allowed to mean

The coefficient counts the minimum set of validators, miners or control entities required to cross the relevant threshold of network power. A high number raises the cost of coercion. Censorship gets harder. A single exchange, fund or government has fewer obvious handles.

That is a commercial fact for any network that wants to carry money or securities. Institutions will not place meaningful activity on infrastructure a handful of entities can materially control. A serious coefficient is a reason to stay in the conversation. It is not the end of the conversation.